Financial Information for the Six Months Ended June 30, 2012

Compagnie Générale des Établissements Michelin

First-Half 2012
High profitability lifted by the Group’s global strategy
Operating income before non-recurring items of €1,320 million and 12.3% of net sales
Free cash flow at breakeven
2012 Guidance
Clear increase in operating income before non-recurring items
Positive free cash flow

  • €1,320 million in operating income before non-recurring items, up 36% on 2011, reflecting:
    • The Group’s strategy and competitive advantages:
      • Global footprint
      • High margins in the Specialty businesses
      • Premium positioning
    • The quality of its management
      • Favorable combination over the period of a strong price effect and a limited negative impact from raw materials costs
      • Improved margins in Truck tires
  • Volumes down 8.3%, at a time of weak demand in Europe
  • Free cash flow at breakeven

Outlook for full-year 2012

In a still uncertain market environment, mainly in Europe, Michelin’s global presence across every market segment represents a competitive advantage. To strengthen it, the Group is pursuing an ambitious capital expenditure plan that is expected to total around €2 billion over the full year. The outlays are focused on building new capacity in growing markets, improving industrial productivity in mature markets and driving sustained technological innovation.

Confident in its strengths, Michelin confirms its full-year objective of reporting a clear increase in operating income before non-recurring items. Following the decline in demand in the first half, sales volumes are now expected to end the year down by 3% to 5%. However, this should be offset mainly by more favorable raw materials costs and a positive currency effect. Michelin also confirms its objective of generating positive free cash flow, before the impact of the sale of a property complex in Paris.

Investor Relations Media Relations Individual shareholders

Valérie Magloire
+33 (0) 1 78 76 45 37
+33 (0) 6 76 21 88 12 (cell)

Matthieu Dewavrin
+33 (0) 4 73 32 18 02
+33 (0) 71 14 17 05 (cell)

Corinne Meutey
+33 (0) 1 78 76 45 27
+33 (0) 6 08 00 13 85 (cell)
Jacques Engasser
+33 (0) 4 73 98 59 08


This press release is not an offer to purchase or a solicitation to recommend the purchase of Michelin shares. To obtain more detailed information on Michelin, please consult the documents filed in France with Autorité des Marchés Financiers, which are also available from the website.

This press release may contain a number of forward-looking statements. Although the Company believes that these statements are based on reasonable assumptions as at the time of publishing this document, they are by nature subject to risks and contingencies liable to translate into a difference between actual data and the forecasts made or inferred by these statements.